GOVERNMENT: Reverse Wrecking

The SEC last week served notice that it
wants the utility holding company skyscrapers torn downby the freak
method of ripping out the basement first. It bluntly told sprawling
Engineers Public Service Co. it could not use excess cash to retire its
own top-story preferred stock, must pay off underlying subsidiary bonds
& stock instead. SEC's reason: this would "strengthen the financial
integrity" of the subsidiaries. Retorted Engineers: yes, but it would
also slash their excess-profits tax base, thus boost taxes and
hamstring earnings.

All this puts Engineers back 15 months to the day it first filed
application to repurchase...